IMPACT OF CUSTOMER RELATIONSHIP MANAGEMENT

Customer Relationship Management refers to a management approach that seeks to create, develop, and enhance relationships with carefully targeted customers in order to increase retention of profitable customers. Galbreath and Rogers(1999) states that Customer Relationship Management streamlines activities a business unit performs in order to identify,qualify,acquire,develop and retain ever more loyal and profitable customers by delivering the right product or service, to the right customer, through the right channel, at the right time and the right cost. It plays an important role in delivering a high quality customer service and its performance has linkage with manufacturers’/suppliers’ performance. Customer relationship management is increasingly important to firms as they seek to improve their profits through longer-term relationships with customers. The major objective of Customer Relationship Management is to turn current and new customer into regularly purchasing clients and then to progressively move them through, being strong supporters of the company and its products and finally being active and vocal advocates for the company in the market